Recent developments in the Brazilian securities market: Part One

The Brazilian Securities and Exchange Commission (Comissão de Valores Mobiliários — CVM) is responsible for regulating and overseeing the Brazilian securities market. Among its duties, CVM shall promote the expansion and the regular and efficient operation of the Brazilian stock market, and stimulate permanent investments in the capital stock of publicly-held corporations controlled by local private capital. It shall avoid or prevent any kind of fraud or manipulation intended to create artificial conditions of supply, demand or price of the securities traded on the market. These duties are expressly contemplated in article 4, items II and V, and article 8, item I of Law No. 6.385, of December 7, 1976 (the Brazilian Securities Act), which regulates the Brazilian securities market and creates CVM.